CT lawmakers mull worker retirement access
Connecticut's private sector workers would have access to state-run retirement plans under legislation moving through the General Assembly with the support of majority Democrats, but questioned by skeptical Republicans who say the state should stay out of private investment decisions, The Associated Press reports.
Two committees have approved a measure establishing a trust fund to administer retirement plans for workers who would automatically be enrolled unless they opt out, The AP’s Stephen Singer reported Tuesday.
Democratic Rep. Peter Tercyak, the House chairman of the legislature's Labor and Public Employees Committee, said the legislation is intended to provide workers with access to retirement plans even if their employers don't.
Connecticut's legislation, which now heads to the Senate, would extend access to individual retirement accounts to employees who are not eligible for an employer pension or other unspecified "arrangement" recognized in federal tax law. For a fee, a trust fund board would establish investment choices, provide educational information, determine eligibility and conduct other administrative functions.
Labor unions and their Democratic allies have voiced alarm at the erosion of pensions as companies, facing intense competition and pressure on profit and revenue, eliminate the costly benefit. In its 2012 report, the Pension Benefit Guaranty Corp., a federal agency, said fewer than half of private sector workers, or 45 percent, have employer-provided retirement plans. Most are contribution plans such as a 401(k) in which workers invest money in stocks and bonds rather than a company pension, it said.
Most Recent
Most Recent
0 Comments